RNS Number:5730N
Total Systems PLC
10 July 2000
Total Systems plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 March 2000
Total Systems plc ("Total"), the financial services software supplier and
internet, intranet and extranet developer, announces its preliminary results
for the year ended 31st March 2000.
Commenting on the Results, Terry Bourne, Chairman and Chief Executive, said:
"Performance for the year has been in line with expectations with our results
being strongly influenced by industry specific factors..the Directors have
decided not to propose a final dividend due to protracted contract
negotiations and delays in decision making by prospective clients. The funds
retained by this decision will help to support our ongoing investment strategy
aimed at improving medium term performance."
Highlights
* Turnover of #1.96m (1999: #3.25m).
* Loss before tax of #579,589 (1999: profit before tax #629,873).
* Loss per share of 4.00p (1999: EPS of 4.34p).
* Financial strength demonstrated by cash position and net assets of 24.3p
per share.
* Core markets remain the insurance and pension fund sectors of the UK
financial services industry and Total have invested considerably in
development of Ultima.
* Period of low staff utilisation enabled many to be cross trained and re-
trained.
* totalenow, the internally developed e-commerce product incorporating b2b
and b2c applications, was launched successfully in April 2000.
* Interest in totalenow is being shown by a number of prospects across a
wide range of industry sectors and to date five contracts have been
signed. Total's profile in some of its target areas - travel and direct
marketing - have been raised accordingly.
* Total are in a strong position to benefit from anticipated improvements in
order intake.
Regarding Total's Current Trading and Outlook, Terry Bourne added:
"We remain confident that major growth opportunities exist..However, any
improvement in business conditions will not impact our first half results but
the second half of the current financial year should benefit from a
considerable improvement in activity.The Board approach the future with
optimism."
E-mail: info@totalsystems.co.uk web site: http://www.totalsystems.co.uk
Enquiries:
Terry Bourne, Chairman Total Systems plc 020 7294 4888
Granville Harris, Finance Director Total Systems plc 020 7294 4888
Simon Ellis/Peter Binns Binns & Co. PR Ltd. 020 7786 9600
Chairman's Statement
RESULTS
Performance for the year has been in line with expectations with our results
being strongly influenced by industry specific factors. Turnover for the year
was #1,958,040 (1999: #3,247,157). The loss before tax was #579,589 (1999:
profit before tax #629,873) resulting in a loss per share of 4.00p (1999:
earnings per share 4.34p).
FINANCIAL
The financial position remains strong and is demonstrated by zero gearing,
cash of 16.96p per share and net assets of 24.3p per share.
DIVIDEND
An interim dividend of 0.80p per share was paid to shareholders on 29 February
2000. Although our balance sheet remains strong with cash representing the
major part of our net assets, the Directors have decided not to propose a
final dividend due to protracted contract negotiations and delays in decision
making by prospective clients. The funds retained by this decision will help
to support our ongoing investment strategy aimed at improving medium term
performance.
STRATEGIC DEVELOPMENTS
Our core markets are in the insurance and pension fund sectors of the
financial services industry. While operating costs have been reduced we have
invested more in existing and new product development than the previous year.
In April 2000 we launched our own internally developed e-commerce product
"totalenow", incorporating both b2b and b2c applications. Immediate interest
was shown by a large number of prospective clients across a wide range of
industry sectors and to date five contracts have been signed with more in the
pipeline. Due to the nature of these contracts it is unlikely that there will
be a significant impact on our revenue until the latter part of 2001.
Alternative pricing structures for all our products continue to be refined.
These offer our clients greater flexibility and should attract those companies
for whom initial capital expenditure is a barrier. The medium term effect of
this would be to provide a recurring income stream of licence and service
revenue lasting a number of years. Flexibility is our keyword in meeting
clients requirements.
Considerable investment has been made in the further development of our Ultima
product and in bringing "totalenow" to market. The period of low staff
utilisation has also enabled cross training and re-training of personnel to
take place, the result of which is to put your Company in an exceptionally
strong position to take advantage of the anticipated improvement in trading
conditions.
CURRENT TRADING AND OUTLOOK
We remain confident that major growth opportunities exist. Although the
recovery in market activity was slow following Y2K, market conditions are now
steadily improving with the pipeline of prospective clients continuing to
grow. However, any improvement in business conditions will not impact our
first half results but the second half of the current financial year should
benefit from a considerable improvement in activity.
Our recent e-commerce marketing campaign has proved particularly effective and
has raised our profile in many new areas of industry for the Company such as
travel and direct marketing.
Interest in our products continues at an exceptionally high level,
particularly in relation to internet trading, but cautious buying trends are
continuing to result in a protracted decision making timescale.
Results of commissioned research strongly indicate that the key needs of
insurance companies are to improve efficiency and introduce cost savings.
Ultima has the proven ability to meet these needs together with providing an
enhanced full internet capability across the spectrum of insurance activities,
as well as providing far greater functionality and flexibility than
competitive products. This places your company in an ideal position to take
full advantage of the change that must take place within the insurance sector
of the financial services industry.
With the energy, ability and commitment of our staff we will focus on the
opportunities for growth and expansion with enthusiasm. The Board approach the
future with optimism.
Terry Bourne
Chairman
7 July 2000
Consolidated Profit and Loss Account for the year ended 31 March 2000
Note 2000 1999
# #
TURNOVER 2 1,958,040 3,247,157
======= =======
OPERATING (LOSS)/PROFIT (709,921) 427,028
Interest Receivable 130,332 202,845
----------- ----------
(LOSS)/PROFIT ON ORDINARY
ACTIVITIES BEFORE TAXATION (579,589) 629,873
TAX CREDIT/(CHARGE) ON
(LOSS)/PROFIT ON ORDINARY
ACTIVITIES 163,061 (177,667)
----------- ------------
(LOSS)/PROFIT ON ORDINARY
ACTIVITIES AFTER TAXATION (416,528) 452,206
DIVIDENDS (83,372) (208,253)
------------ ------------
AMOUNT TRANSFERRED
(FROM)/TO RESERVES (499,900) 243,953
============ ============
(Loss)/Earnings per share 5 (4.00)p 4.34p
Diluted (Loss)/Earnings per share (3.97)p 4.29p
Dividend per share 6 0.80p 2.00p
NOTES:
1 The 1999 statutory accounts have been delivered to the Registrar of
Companies.
2 The Group's turnover is derived from the writing and supply of computer
software and supply of third party software both with related hardware in
the United Kingdom. All activities derive from continuing operations.
3 The financial information contained in this statement does not constitute
the statutory accounts for the years ended 31 March 1999 and 2000, as
defined in section 240 of the Companies Act 1985, but is derived from
those accounts. The auditors have reported on those accounts; their
reports were unqualified.
4 The announcement has been prepared on the basis of accounting policies as
per the prior year.
5 The calculation of earnings per share is based on a loss after taxation of
#416,528 (1999: profit #452,206) and a weighted average of 10,424,815
shares (1999: 10,410,611) in issue during the period.
6 An interim dividend of 0.8p per share was paid to shareholders on 29
February 2000. No final dividend is proposed.
7 It is intended to post the annual statement and report to shareholders on
11 July 2000. Copies are otherwise available from the Registered Office of
the Group at 394 City Road, London EC1V 2QA. The Annual General Meeting
will be held at 394 City Road, London EC1V 2QA on Friday 4 August 2000 at
10.00 a.m.
Consolidated Balance Sheet at 31 March 2000
2000 1999
# # # #
Fixed assets
Tangible assets 773,465 800,336
Current assets
Debtors 414,746 840,275
Cash at bank
and in hand 1,772,589 2,490,651
------------ ------------
2,187,335 3,330,926
Creditors: amounts
falling due
within one year (420,288) (1,096,985)
------------ ------------
Net current assets 1,767,047 2,233,941
------------ ------------
Total assets less
current liabilities 2,540,512 3,034,277
Provisions for
liabilities
and charges
Deferred taxation - (2,205)
----------- -----------
2,540,512 3,032,072
----------- -----------
Capital and reserves
Called up share capital 522,578 520,710
Share premium account 66,177 59,705
Profit and loss account 1,951,757 2,451,657
------------ -----------
Equity shareholders'
fund 2,540,512 3,032,072
------------ -----------
Consolidated Cash Flow Statement for the year ended 31 March 2000
2000 1999
# # # #
Operating activities
Cash received
from customers 2,604,063 4,393,114
Cash payments
to suppliers (571,927) (700,644)
Cash payments
to employees (1,270,659) (1,467,613)
Cash payments
for P.A.Y.E. and
National Insurance (762,197) (882,411)
Cash paid for VAT (270,051) (532,236)
Other business
payments (129,040) (156,666)
------------ ------------
Net cash
(outflow)/inflow from
operating activities (399,811) 653,544
Return on
investments and
servicing of finance
Interest received 130,332 202,845
------------ ------------
Net cash inflow
from returns on
investments and
servicing of finance 130,332 202,845
Taxation
Corporation tax paid (155,519) (330,849)
Capital expenditure
and financial
investment
Purchase of tangible
fixed assets (96,241) (67,818)
Sale of tangible
fixed assets 3,179 1,693
------------ ------------
Net cash outflow
from capital
expenditure and
financial investment (93,062) (66,125)
Equity dividends paid (208,342) (187,386)
------------ -----------
Cash (outflow)/inflow
before use of
liquid resources
and financing (726,402) 272,029
Financing
Proceeds from
exercise of
share options 8,340 869
----------- ----------
(Decrease)/increase
in cash in the period (718,062) 272,898
----------- ----------
Total Systems (LSE:TTS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Total Systems (LSE:TTS)
Historical Stock Chart
From Jul 2023 to Jul 2024
